ORDERS:
ORDER AND DECISION
This matter comes before me on the application for a property and casualty private passenger
automobile insurance premium rate increase by National General Insurance Company. Upon
motion, the Department of Consumer Affairs was made a party pursuant to S.C. Code Ann. §
37-6-604 (Supp.1994). After notice to the parties, a public hearing and contested case hearing
were held on May 19, 1995.
FINDINGS OF FACT
I make the following findings of fact, taking into consideration the burden on the parties to
establish their cases by a preponderance of the evidence and taking into account the credibility of
the witnesses:
1. Petitioner filed an application for a rate increase for its property and casualty private passenger
automobile insurance on January 10, 1995. The request was for an overall increase of 7.4%.
The last application for an increase was filed in October 1993.
2. After review of the information to support the filing, the Department of Insurance questioned
the methodology in calculating the overall increase. Discussions ensued between the Petitioner
and Respondent regarding the information contained in the filing.
3. As a result of those discussions, the Petitioner has filed an amended application requesting an
overall increase of 4.2% on May 17, 1995.
4. By notices dated April 13,14, and 19, 1995, the public was notified of the application for a rate
increase by Petitioner and the hearing scheduled for May 19, 1995.
5. Respondent, through its actuary, represents that the rate increase request will produce rates
that are not excessive, inadequate, or unfairly discriminatory.
6. The Consumer Advocate also reviewed the filing independently and does not object to the
increase as proposed in the amended filing.
7. No member of the public appeared at the public hearing regarding the proposed rate increase.
CONCLUSIONS OF LAW
Based upon the findings of fact, I conclude as a matter of law:
1. The Administrative Law Judge Division is empowered to hear this case pursuant to S.C. Code
Ann. § 38-73-910 (Supp. 1994) and Chapter 23 of Title 1, as amended, of the 1976 Code.
2. An application for an insurance rate increase is governed by S.C. Code Ann. §§ 38-73-10, et
seq (Supp. 1994). Rates shall be neither excessive, inadequate or unfairly discriminatory, and
shall include a reasonable margin for underwriting profit.
3. Notice of the filing and of the public hearing was given in all newspapers of statewide
circulation at least thirty days in advance of the hearing. S.C. Code Ann. § 38-73-910 (Supp.
1994).
4. Petitioner met the burden of proof in a rate increase request by establishing that the increased
rates would not be excessive, inadequate or unfairly discriminatory. See S.C. Code Ann. §
38-73-10(a)(1) (Supp. 1994).
ORDER
Based upon the findings of fact and conclusions of law, it is therefore
ORDERED, that the proposed 4.2% increase National General Insurance's private passenger
automobile insurance is approved effective immediately.
AND IT IS SO ORDERED.
________________________
ALISON RENEE LEE
Administrative Law Judge
May ____, 1995
Columbia, South Carolina. |